The U.S. Treasury recently announced that participants in Healthcare Flexible Spending Accounts would now be able to carry over $500 of unused funds into the next year, but only if your employer chooses to allow it. Employers can allow either a 2.5 month grace period after the end of the year or the $500 rollover, but not both. Or they could be punks and offer neither. This could start as early as this year for 2013 funds.
I like the proposal that these “use-it-or-lose-it” FSAs be simply rolled into Health Savings Accounts which are currently only available to those with high-deductible health plans. The infrastructure and administrators (bank and brokerage holding accounts) already exist, and that way people can simply set aside some tax-protected money for health care for an indefinite period without worrying about losing it. Don’t make people predict their own medical expenses, that’s the main reason we need insurance.